Photo : Alexander Zemlianichenko / Associated Press
19 January 2024, Friday | NIAS Europe Daily Brief #734
In Brief
By Alka Bala
INTERNATIONAL
EU sets a maximum limit of EUR 10,000 for cash payments aiming to reduce money laundering
On 19 January, Deutsche Welle reported the EU’s plan to combat money laundering and cryptocurrency. Financial intelligence units of member countries will have increased powers to supervise suspicious accounts and suspend transactions. New rules also require crypto-asset providers to undergo due diligence report suspicious activities of their customers, and monitor transactions up to EUR 1,000 or more. This EU regulation will expand to football clubs and agents as well. EU hopes that these measures will help in tackling widespread money laundering and terrorist financing. (Roshni Majumdar, “EU seeks cash payment limit, tougher money laundering rules,” Deutsche Welle, 19 January 2024)
GERMANY
Destatis reports a gender pay gap of 18 per cent
On 18 January, Deutsche Welle reported based on the research by the Federal Statistics Office, Destatis, that women earned 18 per cent less than men since 2020. Women earned an average of EUR 20.84 per hour whereas men earned EUR 25.3. The gender pay gap varied within Germany where East Germany had a lower gap at seven per cent. The gender pay gap could be likely due to women taking greater absences, due to childcare and household responsibilities. According to the report, the pay gap could also be caused by women’s greater involvement in marginal employment and part-time work. Across the EU women are paid 13 per cent less than men. (“Gender pay gap in Germany: Women earn 18% less than men,” Deutsche Welle, 18 January 2024)
SPAIN
18 people from a shamanic group arrested for providing psychoactive drugs
On 18 January 2024, the BBC reported the arrest of 18 members of a shamanic organisation by Spanish police, alleging their involvement in providing hallucinogenic drugs to its members under the promise of promoting physical and mental health through such consumption. Police also seized EUR 24,000 (USD 26,000), in various currencies, and one kilogram (35oz) of mescaline. Some of the suspects are charged with human trafficking, violation of workers’ rights and smuggling, whereas the group leader posthumously was sexual crimes and promotion of illegal immigration. Besides Spain, the group has been reported to be active in 10 other countries, including Belgium, Ireland, Mexico, Colombia and Turkey. ( Sam Hancock, “Spain shaman arrests: Police say group sold psychoactive drugs to members,” BBC, 18 January 2024)
REGIONAL
Sparks over treatment of the EU migrants to the UK
On 18 January, The Guardian in an opinion piece reported the row over the treatment of the EU migrants in the UK, citing the difficulty faced by a Spanish woman, residing and living in Bedfordshire on her re-entry to the UK, after a family visit to Spain. Britain, post-Brexit has been denying 4000 EU migrants into the country every quarter, citing undocumented work and study plans. According to Oxford University’s Migration Observatory, most of the people rejected are from Romania, Bulgaria, Poland and Portugal. Highlighting the loss of growth and trade as a result of Brexit, it’s questionable if Britain has succeeded in “taking back control of its borders,” as 142,000 EU citizens wait in anxiety and uncertainty for their settlement applications to be reviewed since September 2023. Whereas hostility in Britain’s actions regarding migration has led to a demand for reciprocal behaviour by the EU citizens. (María Ramírez, “EU citizens are being kicked out of the UK. In Spain, people are asking: why not treat Brits the same way?,” The Guardian, 18 January 2024)
RUSSIA
Top diplomat Sergei Lavrov dismisses US proposal to resume nuclear arms talks
On 18 January, El País reported the rejection of the US proposal for Russia and the US to resume dialogue on nuclear arms control. Russia’s Foreign Minister stated the nation’s disapproval of engaging in talks with the US, given its hostile policy against the former and its military support to Ukraine. Asking the US to revisit its current hostile policy, allowing nuclear inspections is the US trying to establish control over Russia’s nuclear arsenal, and to identify the risks that it faces. The New START treaty, which was signed in 2010, by the US and Russia was the only existing arms control treaty between the nations, It was halted during the pandemic and discontinued as Russia suspended its participation as the US and NATO stated it supported Ukraine and was committed towards the Russian defeat. (“Russia’s foreign minister rejects a US proposal to resume talks on nuclear arms control,” El País, 18 January 2024)
GERMANY
Parliament votes for easing the deportation of rejected asylum seekers
On 19 January, according to El País, the German Parliament voted for legislation that eases the deportation of unsuccessful asylum seekers, allowing them temporary permission to stay in Germany for reasons such as illness, a child with residency and lack of ID. The legislation increased the maximum length of pre-deportation custody from 10 to 28 days, while specifically focusing on the deportation of individuals who are connected with criminal organisations. The legislation came through as thousands of people protested against the plans of the far-right to deport migrants. Germany to date has provided asylum to around one million Ukrainian refugees. (“German parliament approves legislation easing deportations of rejected asylum seekers,” El País, 19 January 2024)
REGIONAL
NATO to start the biggest military exercises with 90,000 personnel
On 18 January, El País reported NATO’s plans to conduct the biggest military exercises, named ‘Steadfast Defender 24’, would involve troops from 31 member nations including the recently joined member, Sweden. Exercises are scheduled to begin next week and troops will move through Europe till the end of May. The exercises come through as the Russia-Ukraine war continues and are aimed at displaying the strength and ability of the alliance to defend its entire territory up to the borders of Russia. The UK is expected to send 20,000 troops, accompanied by fighter jets, surveillance planes, warships and submarines and is expected to deploy them in Eastern Europe from February to June. (“NATO to start biggest wargames in decades next week, involving around 90,000 personnel,” El País, 18 January 2024)
EU institutions prepare to challenge transfer of funds to Budapest
On 18 January, El País reported the European Parliament’s 345-104 vote to challenge the European Commission if it had all the necessary measures “to protect EU’s financial interests”, before releasing funds to Hungary. The funds were supposed to be released after Hungary’s show of support for rule of law reforms on the independence of the judiciary and political interference. However, the parliamentarians feel that Hungarian Prime Minister Viktor Orbán hadn’t done enough to earn the funds. They also criticised European Commission President Ursula von der Leyen for her approval of funds before Hungary abstained to vote on a crucial Ukraine vote at a summit. EU leaders fund themselves at odds with Orbań’s actions and have blocked funds of around 20 billion euros due to similar rule of law concerns. (“European Union institutions gear up for a fight over Orbán’s rule of law record, funds for Hungary,” El País, 18 January 2024)
German arms industry ramps up production for Ukraine
On 16 January, Deutsche Welle reported in an opinion article about Germany and Russia increasing arms production as the Russia-Ukraine war continues. Germany will be delivering the fourth Iris-T battery by the end of the winter and four more systems by 2024 according to Ukrainian Air Force spokesman Yurii Ihnat. Two major German arms contractors sending supplies to Ukraine are Rheinmetall, providing ammunition for Ukraine’s anti-aircraft tanks and Diehl Defense, which produces Iris-T. Earlier, Russia had presented its arms production figures, which stated a 50 times increase in ammunition production of small arms and a seven times increase in the production of tanks. However, Nico Lange, a security expert, commented on the quality of Russian battle tanks, which appear to be refurbished and lack modern targeting devices, highlighting its risks in combat. He emphasised how the outcome of a long war is ultimately decided by the quality of weapons. ( Frank Hofmann, “German arms makers boost supplies for Ukraine,” Deutsche Welle, 16 January 2024)